With the 1% sales tax increase now behind us, those who are thinking of buying or leasing a vehicle in the upcoming months are faced with a Vehicle License Fee (VLF) increase. The fee hike will take effect May 19th, and has been created as a source of revenue to assist in reducing the $42-Billion California budget deficit!

This increase nearly doubles the current vehicle licensing fee, and will affect those who are planning to buy or lease a new or used vehicle, and those who have a registration renewal due any time after May 19th. The increase is said to be temporary through June 30, 2011, but an extended date of June 30, 2013 has already been put on the table.

The California Vehicle License Fee is based solely on a vehicle’s sale/lease price – the greater the price of the vehicle, the greater the Vehicle License Fee. The new VLF will account for an approximate $5 increase per $1000 in vehicle value, so if you are thinking of buying or leasing a new or used vehicle in the upcoming weeks or months, you could potentially save yourself in the hundreds of dollars by doing so now.

Questions? Call 818.345.5555 or e-mail [email protected] and we’ll have answers. For more detailed information about the California VLF, visit http://www.dmv.ca.gov/faq/faq_vlf.htm.